As sustainability becomes an enterprise-wide mandate rather than a siloed initiative, organizations are evolving their digital transformation road maps to embed sustainability into core business operations. Enterprises are expected to fulfill their environmental commitments through clear disclosures, quantifiable actions, and cross-functional accountability. But as regulations become more stringent and sustainability expectations rise, organizations are recognizing a dual imperative: to modernize ESG and emissions data management and to invest in technology-driven upskilling programs that address the green skills gap across industries, ensuring a workforce prepared for the evolving sustainability landscape.
According to Avasant’s Tech-Enabled Sustainability Services 2025 Market Insights report, data intelligence, and talent capability are not only strategic priorities but deeply interconnected. Enterprises are rapidly moving from fragmented ESG reporting and skill shortages to holistic, digitally enabled sustainability strategies backed by future-ready teams.
Powering ESG with Digital Innovation
With global regulations such as the EU Corporate Sustainability Reporting Directive (CSRD), Science-Based Targets Initiative (SBTi), US Securities and Exchange Commission’s climate rules, and various country-specific disclosure mandates gaining traction, ESG reporting has become a critical area of compliance and business performance. Yet, many enterprises continue to struggle with fragmented systems, manual processes, and poor data quality, making it difficult to track emissions, respond to audits, and meet investor expectations.
To overcome this, organizations are deploying cloud-based ESG platforms, AI-powered automation, and data integration tools that unify emissions tracking across departments, geographies, and suppliers. These platforms automate the collection, validation, and reporting of Scope 1, 2, and, increasingly, Scope 3 emissions, ensuring accuracy and auditability at scale.
Generative AI, machine learning, and cloud-based solutions are being increasingly leveraged to extract, interpret, and normalize ESG data from IoT-enabled assets and complex supply chain networks. ESG analytics is now embedded in finance, procurement, and entire business operations dashboards, allowing leaders to monitor sustainability metrics alongside business KPIs in real-time.
Naturally, enterprises are making significant investments in digital technologies, including AI, generative AI, and intelligent automation, to transform ESG from a reporting function into a strategic performance driver. These investments not only streamline compliance but also enable predictive capabilities, data visualization, and cross-enterprise sustainability alignment.
For instance, in 2024, EnerSys integrated generative AI into its sustainability and ESG data management processes. By leveraging AI-powered platforms, the company automates data extraction and analysis from utility bills across its 180 global sites, enhancing accuracy and efficiency in tracking Scope 1 and Scope 2 emissions. This advancement also improves sustainability reporting and compliance. Similarly, L’Oréal partnered with Eviden to implement EcoDesign Cloud, a tool designed to assess the environmental impact of retail and promotional materials. This initiative aligns with L’Oréal’s sustainability goals by providing detailed insights into the carbon footprint of in-store elements across its 24 brands, enabling suppliers to make more environmentally responsible choices.
What’s clear is that ESG reporting is evolving from a static compliance function to a dynamic decision-making engine. Organizations that invest in intelligent ESG systems not only reduce regulatory risk but also gain the agility to benchmark progress, identify performance gaps, and make sustainability a core part of their operational strategy.
Closing the Capability Gap: Building Climate Tech Talent from Within
The best data systems are only as powerful as the people who use them. As sustainability programs scale, enterprises are facing a widening climate-tech talent gap. The skills needed to implement ESG strategies, data analytics, AI integration, carbon accounting, and regulatory understanding are still emerging and in short supply.
To address this, forward-looking companies are launching AI-powered learning platforms, cloud-based training academies, and climate tech upskilling programs. These efforts aim to build internal expertise in areas such as sustainability analytics, ESG compliance, energy management, and green product innovation. For instance, General Motors launched the Automotive Manufacturing Electrical College (AMEC) to prepare its workforce for the transition to electric vehicles (EVs). Through AMEC, employees receive hands-on training in advanced electrical systems critical for next-generation EV platforms, demonstrating how targeted learning initiatives can drive both workforce readiness and sustainable innovation.
This surge in upskilling is not only a talent strategy; it’s also a critical enabler of enterprise-wide transformation. Companies are aligning their climate goals with workforce readiness by embedding sustainability learning into digital transformation initiatives. They are focused on climate-tech investments alongside funding capability-building, ensuring the workforce can effectively operate and scale the new systems being implemented.
Unlocking Scalable Sustainability with Intelligent ESG Systems and Climate Tech Talent
This convergence is especially valuable in today’s dynamic regulatory environment. As reporting standards evolve and new mandates emerge, enterprises with agile data platforms and an upskilled workforce can respond faster, adjust strategies in real time, and maintain continuous compliance without disruption.
More importantly, this blend of technology and talent empowers organizations to go beyond surface-level compliance and drive enterprise-wide decarbonization. From optimizing IT and data center energy use to redesigning products for circularity and driving supplier engagement on Scope 3 emissions, businesses are embedding sustainability across operations.
Reliable ESG systems ensure that sustainability progress is transparent and auditable. Skilled talent ensures that this progress is innovative, adaptive, and scalable. Together, they position enterprises to lead in a future where sustainability is both a compliance requirement and a strategic advantage.
Empowering a Sustainable, Intelligent Enterprise: Strategic Imperatives for Tech-enabled Sustainability
As sustainability shifts from being a reporting obligation to an operational advantage, enterprises must align their digital transformation with climate ambitions. The convergence of generative AI, cloud automation, and advanced analytics is redefining how organizations track, manage, and act on ESG performance. These technologies are becoming central to ESG strategy, and organizations now have the tools to transform how data is captured, analyzed, and utilized. But technology alone is not enough. Building long-term sustainability capability also requires investing in people—closing the climate-tech talent gap through AI-driven learning and hands-on upskilling. Embedding digital intelligence in ESG systems and empowering a skilled workforce enhances compliance and fosters continuous improvement.
As organizations face growing pressure from regulators, investors, and customers to deliver measurable sustainability outcomes, tech-enabled solutions will be key to driving both transparency and impact. A data-driven, intelligent, and energy-conscious approach is no longer optional—it is foundational to building resilient, sustainable, and future-ready enterprises.
By Norkit Lepcha, Lead Analyst, Avasant, and Sahaj Kumar, Associate Research Director, Avasant